Question 1040208
The equilibrium price is when the supply equation is equal to the demand equation.
.09q+50=.07q+65
.02q=15
100*.02q=100*15
2q=1,500
q=750
the equilibrium price is .07*750+65=117.5
when i add the tax of 1.5 per unit to the equilibrium price i get 1.57*750+65=1,242.5